HB 4207 Michigan House · 2025-2026 Regular Session

Insurance: health benefits; excluding federal excepted benefits from a health insurance policy; provide for. Amends sec. 3701 of 1956 PA 218 (MCL 500.3701). TIE BAR WITH: HB 4208'25

HB 4207 amends Michigan's insurance code to exclude "federal excepted benefits" from standard health insurance coverage requirements. It changes the definition of "health benefit plan" to clarify that coverage for specific federal benefits (like certain military or Indian Health Service programs) is not required under state health insurance policies. This directly affects health insurance carriers and policyholders in Michigan by narrowing what must be included in basic health coverage under state law. The bill makes this change by updating Section 3701 of the Insurance Code to exclude these federal benefits from the definition of covered services.

Issues: ✗ Healthcare

Bill status signed all 5 stages cleared

Introduction

Mar 2025

Committee Review

Sep 2025

House Passage

Apr 2025

Senate Passage

Jul 2026

Signed into Law

Jul 2026

Introduced Mar 11, 2025 Signed Jul 29, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

As Passed by the Senate → House Concurred Bill · 3 edits

MINOR

The bill was reformatted from a Senate version to a House-concurred version, standardizing the layout and removing page markers. Substantively, the text of the definitions for 'small employer' and 'full-time employees' was slightly altered to improve clarity and consistency with federal standards, while the core eligibility thresholds and requirements remained the same.

Scope change

The scope of applicability remains unchanged; the bill continues to regulate small employer health insurance plans in Michigan.

DEFINITION

The definition of 'small employer' was clarified to explicitly state that affiliated persons or those eligible for combined tax returns are considered one employer when counting full-time equivalents.

The definition of 'full-time employees' was updated to ensure the calculation aligns precisely with federal regulations (26 USC 4980H), removing redundant phrasing.

TECHNICAL

The document structure was updated to reflect the House's final concurrence, removing Senate-specific headers and page footers while preserving the legislative text.

House Introduced Bill → As Passed by the House · 6 edits · Apr 23, 2025

MODERATE

The bill significantly expands the definitions within Michigan's insurance code to clarify terms like 'carrier' and 'small employer.' It adds new definitions for concepts such as 'actuarial certification,' 'base premium,' and 'index rate' to ensure consistency in how small employer health plans are regulated and priced. The changes also update the definition of 'small employer' to include specific criteria for full-time equivalent employees and adjust the effective date of the law to depend on the passage of related legislation.

Scope change

The scope of the bill remains focused on regulating small employer health insurance, but the definitions now explicitly include multiple employer welfare arrangements and clarify the calculation of full-time employees for regulatory purposes.

DEFINITION

Added new definitions for 'actuarial certification,' 'affiliation period,' 'base premium,' 'commercial carrier,' 'index rate,' 'premium,' 'rating period,' 'waiting period,' and 'public health plan' to standardize terminology.

Expanded the definition of 'carrier' to explicitly include multiple employer welfare arrangements and other persons providing health benefits subject to state regulation.

Revised the definition of 'full-time employees' to align with federal standards, referencing specific sections of the Internal Revenue Code for calculating group size and full-time equivalents.

Added a new clause to the 'creditability coverage' definition to include coverage under Chapter 55 of Title 10 of the United States Code for uniformed services.

Modified the definition of 'group health plan' to clarify that partners in a partnership are considered employees for the purpose of the plan.

ELIGIBILITY

Updated the definition of 'small employer' to specify that it includes persons employing an average of at least 1 but not more than 50 full-time employees, with specific rules for counting full-time equivalents and affiliated businesses.

Floor votes · House Apr 23, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jul 29, 2026

Introduced

filed with Secretary of State 07/23/2026 11:40 AM

lower

Jul 29, 2026

Signed into law

approved by the Governor 07/21/2026 02:16 PM

lower

Jul 3, 2026

Introduced

returned from Senate without amendment with immediate effect and full title

lower

Jul 3, 2026

Upper · Passed

PASSED ROLL CALL # 202 YEAS 36 NAYS 0 EXCUSED 2 NOT VOTING 0

upper

Sep 11, 2025

Upper · Passed

REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)

upper

Sep 11, 2025

Committee

REFERRED TO COMMITTEE OF THE WHOLE

upper

Sep 11, 2025

Upper · Passed

REPORTED FAVORABLY WITHOUT AMENDMENT 9/10/2025

upper

Apr 29, 2025

Committee

REFERRED TO COMMITTEE ON HEALTH POLICY

upper

Apr 29, 2025

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

Apr 23, 2025

Lower · Passed

passed; given immediate effect Roll Call #63 Yeas 106 Nays 0 Excused 0 Not Voting 4

lower

Mar 26, 2025

Committee

referred to second reading

lower

Mar 26, 2025

Lower · Passed

reported with recommendation without amendment

lower

Mar 11, 2025

Committee

referred to Committee on Insurance

lower

Mar 11, 2025

Introduced

introduced by Representative Rep. Mike Harris

lower

1 primary · 1 co-sponsor